President Jokowi Opens the Indonesia Fintech Summit 2020 in Virtual

President Joko Widodo expressed his appreciation to innovators and industrial movers financial technology (fintech) which is able to make a positive contribution to the economy and increase access to finance to the community. In fact, in 2020, the distribution of financial financing by fintech has reached IDR128.7 trillion or an increase of 113 percent year-on-year.

This was conveyed by the President when he opened the Indonesia Fintech Summit 2020 and Fintech Week 2020 virtually as broadcast on the Presidential Secretariat YouTube channel on Wednesday, November 11, 2020.

“Until September 2020, there are 89 organizers fintech which contributed IDR9.87 trillion to Indonesia’s financial service transactions. A total of IDR 15.5 trillion was disbursed by the organizers fintech equity crowd founding licensed. This is a tremendous development, “he said.

However, the President said that Indonesia still has homework in this area of ​​financial technology development. Our Financial Inclusion Index shows that Indonesia is still lagging behind several ASEAN countries in this regard.

“In 2019, our Financial Inclusion Index is 76 percent. It is lower than some other countries in ASEAN, for example Singapore 98 percent, Malaysia 85 percent, Thailand 82 percent. Once again, we are still at 76 percent, “he said.

Not only that, the level of public literacy towards digital finance is still very low. The data shows that only about 35.5 percent of people know about digital finance. There are still many people who use informal financial services and only 31.26 percent of people have used digital services.

Therefore, the President hopes that the innovators fintech not only acts as a lender and online payment provider, but also acts as the main driver of digital financial literacy for the community and expanding digital marketing for MSMEs.

“It simply came to our notice then fintech also have to develop themselves continuously to carry out functions aggregator and innovative credit scoring, provide services equity crowd founding and project financeg, “said the President.

Furthermore, the Head of State also reminded that technological developments in the financial sector could also pose potential risks such as cyber crime, misinformation, and misuse of personal data. Moreover, non-financial banking regulations are not as strict as banking regulations. In this case, industry players fintech must strengthen better and accountable governance and mitigate various risks that arise.

“In this way I hope the industry fintech can provide safe services to the community and contribute greatly to the development of MSMEs and the national economy, “he said.